Saudi Arabia signs new agreements with Ceer to localise electric vehicle manufacturing, creating over 2,600 jobs and generating an estimated US$2.46 billion in economic impact over the next decade.
Saudi Arabia has made yet another landmark move towards establishing its domestic electric vehicle (EV) manufacturing sector by entering into two new pacts with Ceer National Automotive Company, which is Saudi Arabia’s first indigenous electric carmaker. These pacts will bring about an estimated US$2.46 billion economic value for the country during the next ten years.
The pacts were signed between Ceer and LCGPA, which is a government body in Saudi Arabia that deals with the issue of local content within its localization program. The plan aims at building up the country’s manufacturing sector capacity and developing its local supply chain by introducing advanced technology to the Kingdom.
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An important goal of the collaboration is to help in the production of the first electric cars made in Saudi Arabia by design, engineering, and manufacturing. Ceer will produce both sedans and SUVs in order to fulfill the ambition of the country in establishing itself as an automobile manufacturer for regional and global markets.
According to the deals reached, Ceer vehicles will now be included in the compulsory national products list in Saudi Arabia, hence making procurement programs prefer locally produced electric cars. This is anticipated to boost production locally and open new markets to Saudi firms and tech partners.
The project is expected to generate over 2,600 employment opportunities in the next ten years as well as improving the local industrial capacity. In addition, it is anticipated that the partnerships will increase the demand for locally produced raw materials and parts, thus forming a full automotive industry in the kingdom.
Ceer has set highly ambitious long-term goals for itself. By the year 2034, Ceer plans to create employment for about 30,000 people directly and indirectly, out of which 80 percent would be Saudis. It also plans to have 45 percent local content in all its vehicles and contribute as much as $8.02 billion to the economy of Saudi Arabia.
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These agreements are in line with the economic diversification strategy that is pursued by the government of Saudi Arabia in its effort to reduce dependence on oil. The goal of this initiative is to create a sustainable automobile industry through engineering, production, and exchange of knowledge within the country.
The most recent set of deals serve to reaffirm the Saudi government’s pledge to position itself as the regional center of electric mobility and advanced manufacturing. With greater local content, wider reach in terms of suppliers and investments in EV manufacturing capacity, the Kingdom is ensuring that its automobile industry becomes one of its growth drivers in the future.